Compute the current ratio and quick ratio

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Reference no: EM135454

Write a five-to seven-page financial statement analysis of a public corporation, formatted according to APA style as outlined in the Ashford Writing Center. In this analysis you will show the financial health of this company with the ultimate goal of making a recommendation to other investors. Your paper should consist of the subsequent sections: introduction, company overview, ratio analysis, horizontal analysis, final recommendation, and conclusions.

Here is a breakdown of the sections within the body of the assignment:

Company Overview

Give a brief overview of your company (one to two paragraphs at most). What industry is it in? What are its major products or services? Who are its competitors?

Horizontal Analysis of Income Statement and Balance Sheet

Purpose a three-year horizontal analysis of the income statement and balance sheet of your selected company. Show the importance and meaning of horizontal analysis. Show both the positive and negative trends shown in your company.

Ratio Analysis

Compute the current ratio, quick ratio, cash to existing liabilities ratio, over a two-year period. Show and interpret the ratios that you evaluated. Show potential liquidity issues based on your calculations of the existing and quick ratios. Are there any factors that could be erroneously influencing the results of the ratios? Show liquidity issues of competitive companies within the same industry.

Based on your analysis would you recommend an individual invest in this company? What strengths do you see? What risks do you see? It is perfectly acceptable to state that you would recommend avoiding this company as long as you provide support for your position.

Reference no: EM135454

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